EML EASTERN CO

BULLISH Impact: 6/10 8-K
Horizon weeks Filed Jun 2, 2026 Processed 3d 6h ago SEC 0001654954-26-005609
8-K context-dependent: Items 7.01
Latest settled — T+1d
EML ▼ -0.93% at T+1d
LONG call ✗ call lost -0.93% · α vs SPY -0.24% · entry $21.54 → $21.34
Next anchor: T+5d in 4d
Currently $21.57 · +0.14% from $21.54 entry
Entry anchored
Jun 2, 04:49 AM ET
via Databento tick
T+1d
-0.93%
call -0.93% · α -0.24%
$21.34
settled 2d ago
T+5d
call — · α —
in 4d
T+20d
call — · α —
in 26d
T+60d
call — · α —
in 3mo

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Executive Summary

Eastern Company acquired Sungear and Crown Precision for $7.85 million in aggregate consideration, funded via its existing revolving credit facility. The acquired businesses generated approximately $22.8 million in trailing twelve-month revenue, establishing a fourth operating platform in aerospace/defense precision manufacturing.

Actionable Insight

The bolt-on acquisition at a low multiple (~0.34x revenue) adds meaningful aerospace/defense exposure without significant leverage strain. Monitor the next quarterly filing for revenue contribution and margin profile of the new platform; the credit facility remains available for further M&A.

Key Facts

  • Acquired 100% equity of Sungear and Crown Precision for $7.85 million on a cash-free debt-free basis
  • Combined trailing twelve-month revenue of roughly $22.8 million through April 1, 2026
  • Transaction funded entirely through Eastern's existing revolving credit facility with Citizens Bank
  • Fourth operating platform added, complementing Eberhard Manufacturing, Velvac, and Big 3 Precision
  • Existing management teams retained under Eastern's decentralized holding-company model

Financial Impact

Acquisition price of $7.85 million vs ~$22.8M trailing revenue implies roughly 0.34x revenue multiple, modestly accretive for a $130M market-cap company

revenueoperating platformsdebt

Risk Factors

  • Integration risk—Sungear and Crown must continue operating under existing management without disruption
  • Aerospace/defense end-market cyclicality could affect the new platform's revenue stability
  • Additional leverage from the revolving credit facility may increase interest expense if rates rise

Market Snapshot

Exchange
Nasdaq
Sector
Cutlery, Handtools & General Hardware
Analyst Consensus
80% bullish (5 analysts)

Documents Analyzed

This report is based on 5 SEC documents filed with EDGAR.

DocumentAccession Number
8-K Filing (Primary)0001654954-26-005609
Document: eml_ex991.htm0001654954-26-005609
Document: 0001654954-26-005609-index-headers.html0001654954-26-005609
Document: 0001654954-26-005609-index.html0001654954-26-005609
Document: 0001654954-26-005609.txt0001654954-26-005609
6 reports for EML
Performance horizon
100% Hit rate 3 of 3 directional calls best @ T+60▲ +16.07%Mar 6, 2026
Filters
Rows
Reports for EML — sortable, filterable
Type Now
Jun 2, 2026
3d ago
8-K
BULLISH ★ 6/10
$21.54 $21.34▼ −0.93%▼ −0.24%$21.57 (+0.14%)
May 12, 2026
23d ago
8-K
BEARISH ★ 6/10
$20.82 $20.82· 0.00%▼ −0.00%$21.57 (−3.60%)
Mar 23, 2026
10w ago
DEFA14A
NEUTRAL ★ 3/10
$20.64 $19.82▼ −3.97%▼ −4.54%$21.57 (+4.51%)
Mar 16, 2026
11w ago
Insider Cluster
BULLISH ★ 7/10
$20.53 $20.13▼ −1.95%▼ −2.22%$21.57 (+5.07%)
Mar 9, 2026
12w ago
Insider Cluster
NEUTRAL ★ 3/10
$19.05 $19.15▲ +0.52%▲ +0.71%$21.57 (+13.23%)
Mar 6, 2026
13w ago
Insider Cluster
BULLISH ★ 5/10
$18.54 $19.05▲ +2.75%▲ +1.90%$21.57 (+16.34%)
Showing 6 of 6

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